Lampard's faith in youth is appearing to pay off in the Premier League after his side thumped Wolves 5-2 on Saturday, but he knows European football is a different challenge.
"I'm confident but very aware of the dangers," he said.
"Our target is to qualify from a tough group. It is different [from league football]; the main thing is that the concentration levels throughout the game have to be spot on. The different level can surprise you.
"I have belief in the players. I think we have talent that can blossom in the Champions League.
Lampard won the Champions League as a player in 2012 and the former midfielder is looking forward to making his debut in the competition as a manager.
"I had some incredible nights in the Champions League, and some bad ones," he added.
"It's the ultimate in club football. There is something about Stamford Bridge, Champions League football and that music.
"I will be proud to do it."